HMRC's A to Z names envelopes, and reply-paid coupons and envelopes separately, so a business reply envelope is in the same place. An envelope carries something rather than saying anything, which is the same reasoning that standard-rates folders and binders. The one exception in the tax is a charity one and it is precise: under an extra-statutory concession, collecting envelopes that ask for donations, stewardship envelopes for planned giving, and the envelopes used to send out an appeal letter or return a donation can be zero-rated when supplied to a charity, provided each type is over-printed with a related appeal request or is otherwise distinguishable from the charity's usual stationery.
What decides it?
Who it is for and what is printed on it. Only charity appeal envelopes escape.
Where does this come from?
HMRC VAT Notice 701/10, section 8, HMRC's guidance on zero rating books and printed matter. See the notices we work from.
Some real jobs
10,000 printed DL envelopes for a company20%
Envelopes are listed as standard-rated.
Donation envelopes over-printed with a charity's appeal0%
Collecting envelopes asking for donations qualify under the concession at 6.1 of Notice 701/58.
Plain envelopes for the same charity's day-to-day post20%
The relief does not cover general stationery supplied to charities.
